Wellington Place Condominium Property Owners Association, Inc. is pursuing a court-supervised sale of its 72-unit timeshare property in Fairfield Glade, Tennessee, followed by distributions and dissolution. The proposal reaches beyond the debtor’s own property: the association owns 144 unit weeks, approximately 3.85% of the total, and intends to seek authority to sell alongside the other owners’ interests. First-day declaration, pp. 6, 12, 21–22
An October 8, 2026 certificate records supplemental service of notice of the debtors’ motion seeking auction and bidding procedures and sale authorization. The sale, termination of the timeshare plan, and distributions discussed here are proposed steps; that certificate documents notice, rather than approval or completion of those transactions. Supplemental certificate of service, p. 1
Wellington Place Condominium Property Owners Association, Inc.
Court
United States Bankruptcy Court for the Middle District of Tennessee
Case Number
26-03743
Petition Date
August 4, 2026
Case Snapshot
The association filed under Chapter 11, Subchapter V. Its declaration identifies August 4 as the petition date and describes the association as remaining in possession of its assets. Petition, pp. 1–2; first-day declaration, pp. 1–2
A sale involving the other timeshare owners
Wellington Place consists of nine buildings containing 72 two-bedroom units. The declaration identifies 3,744 unit weeks: 144 owned by the association, 1,852 by First American Trust as trustee, 810 by Wyndham Vacation Resorts, and 938 by other interval owners. Those separate ownership interests explain why selling the entire property requires more than disposing of the association’s own share. First-day declaration, pp. 6, 10, 12–13
The association’s stated strategy includes seeking a judgment, by consent or otherwise, permitting a joint sale of its undivided interest and the members’ interests under Bankruptcy Code section 363(h) or other applicable provisions. It also proposes a sale free and clear of members’ interests, with those interests attaching to the proceeds, and termination or amendment of the timeshare plan at or before closing. These are requests the association intends to pursue, rather than findings that the necessary authority has been established. First-day declaration, p. 21
The proposed distribution would occur after administration and sale costs, under a confirmed liquidating plan or another court order. Member distributions could be reduced by amounts owed for delinquent maintenance fees or special assessments. Dissolution would follow the sale and distributions. First-day declaration, pp. 21–22
Repairs and suspended occupancy preceded the filing
Association president Amy Bornmann’s declaration describes declining occupancy and substantial repair needs. It reports occupancy of approximately 49% in 2024 and 46.9% in 2025, and says the 2025 reserve study estimated approximately $7.15 million of repairs, capital improvements, and renovations from 2025 through 2028. The repair figure is an estimate of future expenditures, not a sale valuation or a scheduled debt. First-day declaration, pp. 13–14
According to Bornmann, members authorized the board in October 2025 to pursue bankruptcy and a property sale, subject to court approval. The declaration also reports that the board and property manager had suspended occupancy by members, guests, and others before the filing. First-day declaration, pp. 18–21
Scheduled assets do not establish the property’s sale value
The schedules filed September 8 report $3,830,141.52 in total assets and $17,059.63 in liabilities. The stated asset total includes $3,690,475.45 in cash and cash equivalents and $139,666.07 in deposits and prepayments. Scheduled liabilities consist of $15,583.63 in priority unsecured claims and $1,476 in nonpriority unsecured claims, with no secured claims reported. These are the debtor’s scheduled amounts, rather than allowed claims or completed payments. Schedules, pp. 2–4
The schedules list the association’s real-property interest at an undetermined value, even though the summary carries a zero-dollar real-property total. The reported asset total therefore does not provide a valuation of the proposed property sale. Bornmann anticipated paying claims in full, but described that as the debtor’s expectation for the case. Schedules, pp. 9–10; first-day declaration, p. 22
Joint administration preserves separate estates
The court’s August 5 order provisionally authorized joint administration with seven other associations under the lead case of Glade at Nottingham Villas Vacation Condominium Association, Inc., No. 26-03736. The order expressly limits joint administration to administrative convenience and does not determine substantive consolidation, future distributions, or a joint plan. Joint administration order, pp. 1–3
The October service certificates identify Stretto as the debtors’ claims and noticing agent and document notice of the sale-procedures request to timeshare owners. The substantive question remains the proposal’s treatment of those owners’ property interests: the association seeks to convert separately held interests into sale proceeds, then distribute the net proceeds under later court authority. Certificate of service, pp. 1–2; first-day declaration, pp. 21–22
Sources
First-day declaration, pp. 6, 12, 21–22 /documents/1704b106-5661-4393-a88d-e1be101ac7a6/
Supplemental certificate of service, p. 1 /documents/1e3aac10-b98e-48b2-8174-373958a50c7a/
Petition, pp. 1–2 /documents/2ed5a6e0-9a61-4ccf-a9e7-a5dfa840ead2/
Schedules, pp. 2–4 /documents/4464de41-00f2-40de-b8ee-554e2ae22f86/
Joint administration order, pp. 1–3 /documents/49546b6e-1c61-4ef3-bb77-a7f247d84604/
Certificate of service, pp. 1–2 /documents/5607a27f-c52a-4efd-a6c8-948124a5e1bf/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.